After a recent rally, crypto markets experienced a slight pullback following comments from U.S. Federal Reserve Chairman Jerome Powell, casting doubt on the certainty of an impending rate cut.
Bitcoin (BTC) saw a brief dip of about 1.5%, falling to $88,300 after Powell’s speech on Thursday at a Dallas conference. By press time, the price further decreased to $88,000, marking a 3.2% drop in the last 24 hours. Ether (ETH) followed suit with a similar decline. However, the broader CoinDesk 20 Index edged up by 0.5%, driven by a 13% surge in Ripple (XRP), potentially influenced by remarks from SEC Chair Gary Gensler that have sparked speculation regarding his future in the role.
In his remarks, Powell stated that the economy is showing no signs that would necessitate a quick rate reduction, indicating the central bank can make decisions with more caution. This cautious outlook has led to a drop in market expectations of a December rate cut, with the probability now standing at 62%, down from 83% just a day earlier, according to CME FedWatch data.
Traditional markets also reacted to Powell’s hawkish stance, with the Nasdaq dipping by 0.75% before the close of the trading session.
Despite the pullback in response to Powell’s comments, the crypto market remains strong, with Bitcoin posting a 15% gain over the past week. Several altcoins, including Cardano (ADA), Ripple (XRP), and Stellar (XLM), saw significant gains in the range of 20% to 40%.
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